Unhappy creditors and vendors want to block Nokia Siemens Networks’ planned purchase of Nortel’s wireless assets.
The parties say the bankruptcy court’s bidding process rules are too tight, effectively preventing other companies from making higher bids for the Nortel division. Creditors including MatlinPatterson fear Nokia Siemens would “lock down these valuable core assets,” the bondholder and Nortel creditor write in a U.S. court filing, according to Reuters.
Nokia Siemens said last week it will buy the majority of Nortel’s wireless unit for $650 million. But creditors say such a breakup would cut them out of the money they’re owed. MatlinPatterson further wants the sale process extended by two weeks.
“MatlinPatterson is not prepared to give up on its investment in Nortel or in the potential in the company,” it said. “It believes there may be more value to be achieved.”
Flextronics Corp. also filed objections to the pending Nortel sale.